Pakistan’s DG Khan Cement 1Q loss

Pakistan’s DG Khan Cement 1Q loss
Published: 29 October 2008

DG Khan Cement Ltd., Pakistan’s second-biggest producer of the building material, reported a first-quarter loss because of higher loan costs.

The net loss was PKR223m ($2.7m), or 0.88 rupee a share, in the quarter ended September 30 compared with a profit of PKR267.9m, or 1.06 rupees, a year earlier, the Lahore-based company said in a statement to the Karachi Stock Exchange today. Sales rose to PKR4.41bns, from PKR2.23bn.

Pakistani cement makers have taken loans to expand capacity over the past years to meet rising demand in Afghanistan and the Middle East. DG Khan increased its production to 4.2Mta from 1.7Mt, according to Karachi-based brokerage JS Global Capital Ltd.

The cement maker’s finance costs rose to PKR1.44bn from PKR373.3m a year ago, according to the statement.

Pakistan`s cement sales fell eight per cent in August, as higher construction costs suppressed demand from local builders, according to the All-Pakistan Cement Manufacturers Association. Sales, including exports, fell to 2.33Mt in August from 2.53Mt a year earlier.